Insurer Must Face $31.6M Madoff Claims In Bankruptcy Court

Law360, New York (May 30, 2012, 5:29 PM EDT) -- A bankruptcy court has jurisdiction to decide whether Connecticut General Life Insurance Co. controlled $31.6 million in fraudulent transfers from Bernard L. Madoff's collapsed firm, a New York federal judge said Tuesday, ruling against the insurer.

U.S. District Judge Jed S. Rakoff denied the insurer’s Oct. 12 motion to withdraw a reference to the bankruptcy court. The ruling means a bankruptcy court, rather than the district court, will decide a key issue in the suit by Bernard L. Madoff Investment Securities LLC trustee Irving Picard: whether...
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